Rising Demand for Blockchain Solutions in Banking Sector


The recent successful experiment of ICICI bank where they successfully executed international trade finance and remittance transactions using blockchain technology has made one thing clear – blockchain applications are not a hype anymore!

Since the inception of bitcoin, legal and banking sectors have always been inclined on developing blockchain solutions. The remarkable success of bitcoin has been credited to blockchain: the underlying technology of distributed ledger for the exchange of cryptocurrencies.

The major challenges that financial and banking industry faces today are:
  • Demand for faster and secure transactions
  • Transparency in transactions records
  • Avoiding theft of critical data
  • Third party vendor risks
  • Errors and Duplication of Data
  • Long Time Duration in settlements
The banking sector has been considering blockchain applications to solve these challenges. Below mentioned are the applications of blockchain solutions in banking sectors(proposed):
  • For testing Proof of Concepts.
  • Eliminates the cost of Double Spending by implementing real-time tracking.
  • Increase efficiency in the System.
  • Tamper-resistant System.
  • Removes any scope for errors and duplication
  • Settlement time is reduced to seconds from days by removing the need for intermediaries.
  • Removes the need for third parties, as all participants in the value chain have access to cloud-based assets which verify each party’s identity.
  • The security system is strengthened and enhanced in areas such as payments, credit card information storage. It is achieved by using decentralized public transaction records.
  • To bring automation in transaction processes.
The applications mentioned above make blockchain technology a lucrative option for the banking sector. And going by the trends, by 2017 almost all the major banks would replace their existing system with blockchain solutions.

Prolitus provides best in class consultation for Blockchain-based solution. Our team of consultants critically analyze pain areas of the business and suggest whether Blockchain help your business or not.

For further consultation, contact Prolitus.

Comments

Popular posts from this blog

How to Develop Effective Blockchain Technology Applications

Is It Time to Switch to a Custom Software?

Essentials of Developing an Ecommerce Website